Help for my Mum

Lu_Lu

I wasn't sure where to put this as it spans redundancy and benefits but I've plumped for here!

My Mum was made redundant from her job in November last year. She did a bit of temporary work in December and has been applying for loads of jobs but so far has been unsuccessful. She now has no savings left and no interviews in the pipeline.

I've told her she needs to apply for JSA, which she has an appointment for today so that may help a little but it won't pay the mortgage!

She live in her own house, which has a lot of equity in, with an outstanding mortgage of around £30K. My 83 year old Grandma also lives with her and contributes around £175 a month to the household, as well as buying some food from time to time.

My Mum is 61 and thinks this is why her applications are being unsuccessful, or she's not getting anywhere after interview. I know companies aren't supposed to discriminate for age but it doesn't stop them doing this!

Anyway, I send her jobs and have helped with covering letters and CVs but I am not sure now what else to do. We are not in a position to pay her mortgage for her but what if she doesn't find a job? I think we will have to sell the house but I have no idea where she or my Grandma are going to live. If she did sell the house she may walk away with around £100K but then has no home!

Is there anything else she can do? Is the best option to get the house on the market and see what happens?

elsien

If she's claiming JSA, she could also look at mortgage interest relief SMI. It only pays the interest, but it would be better than nothing.
Has she contacted the mortgage company about her difficulties - just wondering if they might look at a payment holiday for a little while while she properly looks at her options.
Has your mum had any help with her interview technique - if she's getting interviews then lack of success may not just be down to her age - it's easy enough to work out from a CV how old someone us even without the date of birth being on there so if it was all due to her age she wouldn't be getting the interviews.
What line of work is she looking for?

Eta has she put her circumstances through the entitled to benefit calculator to see if there's anything else she's missing out on. What about council tax support for example. What's her retirement age? Would downsizing to a smaller house be a possibility further down the line?

Can grandma pay more for now? £175 pm really isn't a lot for a home and utilities. Is grandma getting everything she should? Might she qualify for attendance allowance?

Jackieboy

Assuming that grandma's income is at least pension credit level then it might be worth suggesting that she could be paying a more realistic level for her board, at least while your mother is struggling.

Otherwise, as has been mentioned, a claim for SMI alongside JSA will help and downsizing could be apprpriate in the longer term.

Also, if grandma has any care needs that would make her eligible for AA, your mother could claim carers allowance and income support if she provides that care.

elsien

Also to add, JSA is very hard to live on. Has she looked at all her outgoings to see if any more savings can be made?

Pollycat

elsien wrote: »

If she's claiming JSA, she could also look at mortgage interest relief SMI. It only pays the interest, but it would be better than nothing.
Has she contacted the mortgage company about her difficulties - just wondering if they might look at a payment holiday for a little while while she properly looks at her options.

I think SMI is only paid if you're receiving income-based JSA.
And the OP's Mum would only be entitled to that if she had been paid less than £153 per week on average over the last 2 years - it doesn't look like the other 2 qualifyers apply.

elsien wrote: »

Eta has she put her circumstances through the entitled to benefit calculator to see if there's anything else she's missing out on. What about council tax support for example. What's her retirement age? Would downsizing to a smaller house be a possibility further down the line?

Agree with using a benefit calculator see link:
https://www.gov.uk/benefits-calculators

The OP says her Mum is 61, even if she were 62 next month - say born on 1st March 1954 - she's not likely to reach SPA until she's over 65 (and that's the age she would be able to apply for Pension credit in her own right).

elsien wrote: »

Can grandma pay more for now? £175 pm really isn't a lot for a home and utilities. Is grandma getting everything she should? Might she qualify for attendance allowance?

The OP's Mum (assuming only her and OP's Gran live in the house) will be losing the 25% single occupant Council Tax discount and depending how much CT is this may be a fair bit of the £175 pm.

I agree the OP's Mum and her Mum both need a review of their potential benefit entitlements.

I really do think this thread should be moved to the Benefits and Tax Credits board.

Good luck with getting your family sorted.

Lu_Lu

Thank you everyone for taking the time to reply. I've looked at the benefit calculators and have told her to ask about council tax support and mortgage interest support. I don't think she is yet at the point of having to speak to her mortgage provider but will also advise her to do this.

My grandma isn't in a position to contribute much more and most of the equity in the house came from the sale of her old one so I think she's done enough! She also does buy food and has paid for the odd electric bill. She does contribute more than the £175 over the course of the month, it's just that is the standing amount in.

Mum has probably been weeded out via her CV as yes you can guess at an age. She has had 3 proper interviews and not got anywhere with these roles but I will also suggest she tries to see if there is any help with interviewing skills.

We've looked at all the outgoings and have stripped this right back, the mortgage is the main issue. Grandma doesn't have any care needs she is actually quite sprightly. Mum just turned 61 so she has another 7-8 years to go before she can retire and then the mortgage will be paid off.

How do I get this thread moved?

Upsidedown_Bear

If she claims certain benefits she might be able to get help with her mortgage payments.
Info here and here (England).

Mojisola

Lu_Lu wrote: »

My grandma isn't in a position to contribute much more and most of the equity in the house came from the sale of her old one so I think she's done enough! She also does buy food and has paid for the odd electric bill. She does contribute more than the £175 over the course of the month, it's just that is the standing amount in.

If Grandma's pension is less than £151.20 a week, she should claim Pension Credit.

As she has put money into the house, isn't it in her interest to keep the mortgage paid?

Lu_Lu

Mojisola wrote: »

As she has put money into the house, isn't it in her interest to keep the mortgage paid?

Yes, absolutely but my Mum is currently trying not to let this worry my Grandma at all by asking for more money. I know what you're saying and I do agree but Mum wants her to enjoy her life and not have to worry about things like this. I do think it will be worse if she has to turn around and sell the house!

I am pretty sure Grandma already claims pension credit and if not it's because her small private pension takes her over the limit slightly.

Kynthia

Perhaps your mum could talk to a free debt charity or Age Concern to get advice on what should should be claiming for (and grandma too) and how to prevent getting into debt while unemployed.

Does she have any private pensions? Are there any properties she could buy with cash if she sold up?

jackyann

There are 2 issues here:
1: Job
2. In absence of job - what can be (rightly, after all those years of contributions) paid in benefits.
I definitely agree that both your mum and gran need to speak to a specialist: Age Concern, CAB, or a local benefit / welfare help organisation.
Sounds as if gran & mum had a decent arrangement that seemed fair to them both, but may now need reviewing, and this is best done by someone who understands all the implications of the "knock-on" effects of different claims.
I also agree that asking for a short payment holiday whilst this is sorted out may be helpful (if mortgage has been paid promptly for many years, they are usually very sympathetic)

I can't help much on the job front, but would say that if mum feels able, then volunteering in something that uses her work skills will at least keep her current and look good on the CV.